The property market received a boost this week with the announcement from Chancellor Rushi Sunak of an eight month stamp duty holiday. From 15 July property buyers will be exempt from paying stamp duty on purchases up to £500,000 until 31 March 2021.
Lenders are also starting to remove restrictions on lending products on higher LTV products. This looks to be positive and we hope this will all help younger first time buyers. Property and second home owners will still continue to pay 3% stamp duty surcharge however they will still benefit from the holiday on the first £500,000 of the property value. This may lead to more buy-to-let landlords moving their property portfolio into a limited company to take advantage of the tax relief on mortgage interest, whilst they may not have the same stamp duty implications.
Our estate agent partners have reported a higher level of enquiries already. This will hopefully give a much needed boost to house builders, estate agents and builders’ merchants. We think this doesn’t go far enough, but its definitely something positive for those looking to buy a property. They can see real savings and put these savings into either buying a higher value property or customising their property by engaging with the building industry.
If you would like to speak to our mortgage team, please get in touch.